Apple is in Trouble and Huawei is the Troublemaker in the Smartphone Market
Huawei is collecting all the Apples it can find and putting them in a basket
For the first quarter of 2016, mobile companies managed to ship 334.6 million smartphones worldwide, compared to 334.4 million in the same quarter last year. This translates into just 0.2% year-over-year (YoY) growth and indicates that the smartphone market is flat lining. IDC places the blame on developed preferences of customers. Users these days are quite satisfied with their smartphones and don’t change their preference every quarter.
The Korean Throne
On top of the worldwide smartphone shipment table sits Samsung, comfortably on the throne. Although the Korean giant faced a 0.6% drop YoY in shipment volumes, it still managed to sell 81.9 million units — courtesy of its newly announced flagships the Galaxy S7 and S7 edge. IDC claims that these two flagships from Samsung have done quite well. The company, however, doesn’t rely on just the premium brands to secure the top position, but its whole smartphone lineup that targets every category and class of consumer i.e. from the top-tier to the bottom of the pyramid.
An “S” Won’t Cut it for Apple
Apple seems to be in hot water as it managed to move only 51.2 million units, compared to the last year’s volume of 61.2 million units, marking a 16.3% decline — the highest among the top five brands.The iPhone 6s and 6s Plus upgrades have not been generating high enough volume for Apple. It seems that Apple fanatics have finally realized that it’s not wise to jump on every “s” and “Plus” upgrade that Apple throws at them.
IDC does not have any figures on the recently released iPhone SE, which is a budget-level iPhone aimed to compete with other mid-tier brands. At $399, however, Apple will still have a tough time going against Chinese brands that offer more bang for buck. The iPhone SE demand though would still be high because this would put an iPhone in the hands of those who stay away from iPhone 6/6 Plus and 6s/6s Plus because of the steep price. The results will be out in the second quarter of 2016 and then only will we be able to find out whether the iPhone SE put Apple’s shipment in the positive or not.
The Trouble Maker
The third spot belongs to Huawei and the Chinese brand has been hot on Apple’s heels to clinch the second spot. The smartphone division performed well in the fourth quarter of 2015 and managed to come third in terms of 2015 volume shipments. In the first quarter of 2016, the Chinese company witnessed a 58.4% YoY increase in smartphone shipments worldwide. The impressive track record is attributed to China and the company’s approach to offer both premium and entry-level devices seems to pay off. With notable devices under its helm such as the Nexus 6P, the Mate series and now the P9, Huawei might replace Apple as the number two vendor by the end of this year.The Chinese Dilemma
The most surprising entry in the top five was OPPO and Vivo that replaced Lenovo and Xiaomi. If you look at it, Chinese brands replaced other Chinese brands, which shows that Chinese consumers are shifting preferences too. Customers now demand sophisticated smartphone offerings. IDC states that the Average Selling Prices have gone up in the country from $207 in 2013 to $257 in 2015. These brands have little presence outside of China and won’t be seen on North American shores anytime soon. Hence, being the world’s largest smartphone consumer market, China will continue to be the playground for many brands. If OPPO and Vivo plan to stay in the top five, their best bet is to branch out of China as well. Currently, the two brands are available in South-East Asia and the Middle East. However, it won’t be long for Xiaomi, the wonder child of China to climb back onboard.
Source: TecnNewsToday
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